Thiruvananthapuram: The commissioning of the first phase of the Vizhinjam International Seaport has been mired in controversy, centering around two key questions: who is bearing the cost of the project and who stands to benefit from it? As the debate intensifies with claims and counterclaims flying thick and fast, here’s a look at the actual expenditure and projected revenue from the Vizhinjam project.

The total expenditure on the Vizhinjam port is expected to reach approximately ₹18,000 crore by its anticipated completion in 2028.

The project is being executed in four phases. With the first phase now complete, work on the remaining three phases will proceed simultaneously. The next phase of development, estimated to cost ₹9,000 crore, will be fully funded by the Adani Group.

Who paid for the first phase?

The cost of the first phase alone amounted to ₹8,867.14 crore. While the Kerala State Government spent ₹5,595.34 crore, the Adani Group shelled out ₹2,454 crore. The Central Government contributed ₹817.8 crore as Viability Gap Funding (VGF) and ₹795 crore as Capital Investment Loan, an interest-free loan to be repaid over 50 years.

How does the future look for the stakeholders?

The Kerala government has earned ₹397 crore through GST since July 2024. While GST from import of port infrastructure came up to ₹348 crore, GST from cargo movement stood at ₹49 crore.

Until 2034, the state’s earnings will be limited to its GST share from cargo movement. Afterwards, the state will begin receiving 1% share of cargo revenue, which will gradually increase to 40% by 2060, when the Adani Group's operational tenure ends. Kerala is projected to earn ₹12.33 crore by 2034 and ₹40.97 crore by 2036.

This income is expected to accelerate in the following years. In addition to the current revenue share, the state will continue to receive GST from port operations.

As for the Adani Group, 100% of revenue from container movement at the port, from the start of operations until 2034, will go to the Indian conglomerate.

The Centre will receive its GST share from cargo movement and other port-related activities. From 2034 onwards, it will also begin recovering the Viability Gap Funding. The repayment will be based on Net Present Value (NPV) calculations at the time of recovery.

In addition, until the VGF is fully repaid, the state government must share 20% of its port income with the Centre. Accounting for NPV adjustments, the total repayment to the Centre is expected to be around ₹12,000 crore.

(With inputs from M A Anooj)